Clawson Company agrees to a contract that includes a piece of equipment, installation, and training. The buyer does not have the expertise available to install the equipment. The buyer does have access to other training resources, but decides to engage Clawson because of its reputation for highquality training. The contract includes a single transaction price covering the equipment, installation, and training. To which performance obligations should Clawson allocate the transaction price?

Group of answer choices

The entire transaction price should be allocated to the equipment because it is the primary reason for the contract and the primary performance obligation.

The transaction price should be allocated to the equipment, installation, and training as three separate performance obligations.

The transaction price should be allocated to two performance obligations: the equipment and installation as a single performance obligation and the training as a separate performance obligation.

More information is required to determine the number of performance obligations to which the transaction price should be allocated.